WASHINGTON: When the Federal Reserve left its key interest rate steady Wednesday, it offered no clues to when it might act again yet made clear that it's edging toward raising rates again eventually. That policy contrasts with the approaches being taken by most other major central banks, which are headed in the opposite direction — to ease credit and to pledge further steps to encourage lending. The European Central Bank and the Bank of Japan, for example, have loosened their interest-rate policies in recent months to try to stimulate growth.

KYOTO, JAPAN - FEBRUARY 25: Japanese Geisha serves green tea for customers during the annual Baikasai, Plum Blossom Festival at Kitano Tenmangu Shrine on February 25, 2014 in Kyoto, Japan. This annual event commemorates enshrined Michizane Sugawara, a politician and plum-blossom aficionado of the Heian-Period, who died in the year 903.

The Federal Reserve left interest rates unchanged while saying risks to the U.S. economy have subsided and the labour market is getting tighter, suggesting conditions are getting more favourable for an increase in borrowing costs.

The Reserve Bank of India unexpectedly cut interest rates Tuesday, lowering its benchmark repurchase rate by 25bps from 6.50% to 6.25% the lowest in more than 5 years, with just 16 of 39 economists surveyed by Bloomberg predicting a rate cut, and all 11 economists polled by the WSJ predicting rates would remain unchanged. The central bank cited a marked slowdown in global growth and a benign inflation outlook, in the first decision made by the recently-appointed committee headed by the new governor, Urjit Patel.

All talk, no action. That's what, as usual, happened at the ECB today where after much bluster and QE rhetoric from everyone including former permahawk Jens Weidmann, the ECB did precisely as most had expected. Nothing. Monetary policy decisions At today’s meeting the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.25%, 0.75% and 0.00% respectively.